Azernews.Az

Azerbaijan's state oil company SOCAR is expanding operations in Turkey, with interests spanning from petrochemicals to the construction sector. One of the latest acquisitions was the controlling package of shares in Turkey's largest petrochemicals group Petkim.
"After a tender on the Petkim company was announced last year, we decided to take a place in Turkey's chemicals industry and energy resources sector," SOCAR president Rovnag Abdullayev told a Baku-based TV channel.
In November 2007, the Turkish body in charge of privatization approved selling 51 per cent of Petkim stock to the joint venture of TURCAS company and SOCAR, the biggest economic project joined by Azerbaijani companies abroad.
Abdullayev said Petkim played the role of a first milestone in this regard. "The company is currently meeting 25 per cent of the demand for chemicals in the Turkish market. As the chemicals industry develops in the country, the figure is expected to go down to 14-15 per cent in the future. New investments should therefore be made in Petkim. We have to build an oil refining complex in the vicinity of the company's chemical plant."
Abdullayev said that after construction of the new refinery is completed, Petkim's supplies of raw materials will triple. "This will allow to sell produced fuel in the Turkish market, and SOCAR will gain the opportunity to make additional profits."
The SOCAR boss said construction work will start in 2009 and $2-3 billion will be invested in the operations.
SOCAR has already transferred $1.660 billion for the acquisition of Petkim. The remaining $380 million will be contributed in three years, according to an agreement reached by the sides.
Petkim is one of the biggest petrochemical enterprises in the region with strategic importance for Turkey. The company, built by oil group TPAO in 1962, is referred to as "the heart of the petrochemical industry" in Turkey.
Abdullayev went on to say that construction of a refinery was under way in the Turkish Mediterranean port of Ceyhan. He said most of the needed licenses have been acquired, and the one on environmental impact was about to be received. After the work is completed, SOCAR will be supplying up to 60 per cent of the neighboring country's chemicals industry and meeting 40-50 per cent of its needs for fuel.
Abdullayev reminded that SOCAR also plans to acquire 50 per cent of shares in Turkey's biggest construction company, Tekfen. A relevant agreement was signed a week ago. The Azerbaijani government believes that a major construction company is needed to implement large-scale projects in Turkey.